AD Banker Comprehensive Exam 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
Which of the following is NOT considered one of the essential elements of a contract? -
Conditions
The reinsurance agreement that automatically accepts all new risks presented by the company
seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. -
Treaty
With health and life insurance a/an _________ is required at the time of the application. -
Insurable Interest
An insurer which is formed under the laws of another country is a(n): - Alien insurer
The ____________ market is a private source of coverage of last resort for individuals or
businesses that have been rejected by voluntary market insurers. - Residual
Which of the following is standard industry practice for producers in order to prove that they
delivered the policy mailed to them from the insurer? - Obtain a policy delivery receipt from the
applicant whenever and wherever policy delivery takes place
A producer must include their name and address on which of the following? - a policy summary
Capital liquidation assumes: - The balance of the account will reduce over a period of time once
payout begins
There are ______ methods available to determine the income objective after the death of the
client for planning purposes. - 2
,In order to receive a stock dividend, the policyowner must own ____________. - Common stock
of the insurer
What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance
(STOLI) transactions? - at policy inception there is a lack of insurable interest
When a producer receives an application for life insurance that is completed and signed, but
without premium payment, when does coverage start? - On the date the policy is delivered and
premium collected
What should a producer do if the policy applied for is issued at a higher rate than was expected?
- Personally deliver the policy, explain the rating, and reinforce the value of the policy
An existing term life insurance policy may be exchanged for a new term life insurance policy on
the ______ date. - Re-Entry
Which of the following life insurance policies has a current and guaranteed maximum premium
stated in the policy? - Indeterminate Premium Life
All of the following are correct pertaining to Decreasing Term, except: - The premium declines
throughout the term of the policy
A married couple wants to make sure that if either of them dies, the survivor has enough funds to
maintain their standard of living but want to accomplish this in the most economical way. Which
of the following recommendations is best suited to accomplish their goal? - Purchase a Joint life
policy
Whole Life is also known as ________ protection. - Permanent
Which Whole Life policy is designed to provide a substantial immediate cash value? - Single
Premium Whole Life Policy
, Sara applies for a $100,000 30 year level term life insurance policy. The producer quoted her a
price of $750 annually if issued as applied for. She wants to make sure that the policy premiums
are taken care of just in case she has a total disability. The policy is issued but the premium is
now $825. What is the most likely reason why the overall premium increased? - Sara now has
added a waiver of premium rider, which requires an additional premium payment
What happens to the overall policy premium when most riders on a life insurance policy expire?
- It goes down
Which of the following is designed for someone with a large insurance need but with limited
cash flow? - Term Life Insurance
All of the following policies end when an insured dies, except: - Joint Survivorship
All of the following statements are true of a juvenile policy, except: - The insured is the premium
payor
Which of the following is TRUE of a term rider when attached to a permanent life policy? - It
can provide additional temporary coverage on the insured or on other members of the family
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is
the amount payable to the survivor? - $250,000
In order for a death benefit to be paid to a beneficiary of a 15-pay Whole Life Policy, the insured
must pay premiums: - For 15 years, or until the insured's death, whichever occurs first
Which of the following policies must be sold by prospectus? - Variable Whole Life
Which of the following beneficiary designations is a class designation? - Any Children of this
marriage
ANSWERS GUARANTEE A+
Which of the following is NOT considered one of the essential elements of a contract? -
Conditions
The reinsurance agreement that automatically accepts all new risks presented by the company
seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. -
Treaty
With health and life insurance a/an _________ is required at the time of the application. -
Insurable Interest
An insurer which is formed under the laws of another country is a(n): - Alien insurer
The ____________ market is a private source of coverage of last resort for individuals or
businesses that have been rejected by voluntary market insurers. - Residual
Which of the following is standard industry practice for producers in order to prove that they
delivered the policy mailed to them from the insurer? - Obtain a policy delivery receipt from the
applicant whenever and wherever policy delivery takes place
A producer must include their name and address on which of the following? - a policy summary
Capital liquidation assumes: - The balance of the account will reduce over a period of time once
payout begins
There are ______ methods available to determine the income objective after the death of the
client for planning purposes. - 2
,In order to receive a stock dividend, the policyowner must own ____________. - Common stock
of the insurer
What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance
(STOLI) transactions? - at policy inception there is a lack of insurable interest
When a producer receives an application for life insurance that is completed and signed, but
without premium payment, when does coverage start? - On the date the policy is delivered and
premium collected
What should a producer do if the policy applied for is issued at a higher rate than was expected?
- Personally deliver the policy, explain the rating, and reinforce the value of the policy
An existing term life insurance policy may be exchanged for a new term life insurance policy on
the ______ date. - Re-Entry
Which of the following life insurance policies has a current and guaranteed maximum premium
stated in the policy? - Indeterminate Premium Life
All of the following are correct pertaining to Decreasing Term, except: - The premium declines
throughout the term of the policy
A married couple wants to make sure that if either of them dies, the survivor has enough funds to
maintain their standard of living but want to accomplish this in the most economical way. Which
of the following recommendations is best suited to accomplish their goal? - Purchase a Joint life
policy
Whole Life is also known as ________ protection. - Permanent
Which Whole Life policy is designed to provide a substantial immediate cash value? - Single
Premium Whole Life Policy
, Sara applies for a $100,000 30 year level term life insurance policy. The producer quoted her a
price of $750 annually if issued as applied for. She wants to make sure that the policy premiums
are taken care of just in case she has a total disability. The policy is issued but the premium is
now $825. What is the most likely reason why the overall premium increased? - Sara now has
added a waiver of premium rider, which requires an additional premium payment
What happens to the overall policy premium when most riders on a life insurance policy expire?
- It goes down
Which of the following is designed for someone with a large insurance need but with limited
cash flow? - Term Life Insurance
All of the following policies end when an insured dies, except: - Joint Survivorship
All of the following statements are true of a juvenile policy, except: - The insured is the premium
payor
Which of the following is TRUE of a term rider when attached to a permanent life policy? - It
can provide additional temporary coverage on the insured or on other members of the family
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is
the amount payable to the survivor? - $250,000
In order for a death benefit to be paid to a beneficiary of a 15-pay Whole Life Policy, the insured
must pay premiums: - For 15 years, or until the insured's death, whichever occurs first
Which of the following policies must be sold by prospectus? - Variable Whole Life
Which of the following beneficiary designations is a class designation? - Any Children of this
marriage
